New Delhi's reported record purchases, ahead of its monsoon sowing season, are expected to push up prices and strain supplies globally

India has agreed to import urea at double the prices it paid earlier this year, amid the supply disruption caused by the Middle East conflict, Reuters has reported.

New Delhi is set to import a record 2.5 million metric tons of the nitrogen-based fertilizer in a single tender, the news outlet reported on Wednesday, citing government sources.

Indian Potash Ltd. has agreed to buy 1.5 million tons of urea at $935 per ton for delivery on the west coast, and an additional 1 million tons at $959 per ton for delivery on the east coast, according to the report.

Before the US and Israel launched the war on Iran in late February, India's Rashtriya Chemicals and Fertilizers received bids at $508 per ton for west coast delivery and $512 per ton for east coast delivery, Reuters reported.

The latest imports would account for nearly a quarter of its annual imports of about 10 million tons in 2025.

The purchase is India's first since the conflict began and comes ahead of sowing for monsoon crops such as rice, corn, and soybeans.

India is the world's biggest urea importer, and its urea production depends heavily on natural gas, mainly imported from the Middle East. The development also comes amid a shortage of liquefied natural gas, a key feedstock for urea production.

Supply disruptions caused by the closure of the Strait of Hormuz have resulted in many domestic fertilizer facilities being forced to halt production.

Urea prices have risen globally since the Middle East war began on February 28, as about 45% of the supplies move through the Persian Gulf.

Higher import costs are likely to push up India's fertilizer subsidy bill, as the federal government compensates fertilizer companies for selling crop nutrients to farmers at lower prices.

Indian companies import fertilizers individually but negotiate collectively with suppliers.

As New Delhi secures supplies, other nations are also expected to scramble for fertilizers, pushing up prices further and straining supplies globally.